This isn't exactly rocket science ... my daughter just started college, and as a tech industry employee let me tell you, she got no financial aid (some other academic things aside).

When we started filling out the student loan paperwork, I had literally this idea (the whole legal separation thing) as a passing thought. Of course, because I'm not a monster, I laughed it off and kept on filling out the paperwork ... but one doesn't have to be a great student out of Wharton to figure out a scam like this, and you can bet your arse more people have actually pulled the trigger on it.

When I was 18 I asked my parents to look into doing that. They laughed it off but like you said it’s a pretty obvious loophole but you have plan ahead a bit to utilize it

What exactly would that look like? The article talks about guardianship, but with 18 they aren't your guardian anymore either way (at least in most states). Or is it about not listing you as a dependent? Doesn't that have negative tax implications for the parents?

I don’t think there are many deductions for kids that no longer need child care, maybe 2k. But the biggest expense is medical insurance, that will eat a lot of the savings

minimal ... it's a few thousand dollars, and after a certain point in income, that deduction goes away entirely no matter how many children you have.